ARMENIA * IRAN * AGREEMENT * GAS

RIA Novosti, Russia
May 13 2004

YEREVAN, May 13, 2004 (RIA Novosti) – Agreement on deliveries of
Iranian gas to Armenia was signed by head of the Director General of
the Yerevan steam power plant Ovakim Ovanesyan and head if the National
Iranian Gas Export Company (NIGEC) Roknoddin Javadi in Yerevan.

Armenian Energy Minister Armen Movsisian said this was a 20-years’
agreement and 36 bln cubic meters of gas will be delivered to Armenia
within this time. Armenia will get 1.1 bln cubic meters of Iranian
gas annually and pay Iran in power.

Construction of the gas pipeline is to be launched in 2004. It is to
be completed by the end of 2006. The pipeline will be 141 kilometers
long (41 kilometers in Armenia and 100 kilometers in Iran). The start
point of the pipeline is Tehran, it will go to Yerevan via the Megria
area of the Armenia-Iran border.

According to preliminary estimates, about $90-100 mln will be allocated
for construction works in Armenia. Iran will earmark about $120 mln
for construction activities on its territory.

Mr Movsisian says foreign companies may engage in the construction
works, in particular, Russian, Chinese, U.S., Brazil and Ukrainian
companies have applied for it.

The Armenian leadership attaches high importance to the Iran-Armenia
pipeline project. According to Armenian President Robert Kocharian,
“the successful implementation of the project will bring relations
between Iran and Armenia to a very high level”.